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74 sats \ 6 replies \ @grayruby 21 May \ on: My Not Fully Thought Out Speculation bitcoin
I definitely think this is politically motivated with the dems feeling they are losing on this issue and as you point out certain dems who would be perfectly happy to have the big banks controlling crypto.
At first I was annoyed at this news but the reality is without a staking element the eth etfs aren't likely going to do very well which might be another boon to bitcoin and separating it from the rest of crypto.
Can you explain this further? It's been a while since I read about eth. I do recall reading a while ago that it's more aligned to bank activites and more susceptible to manipulation. Also, what is the story with staking? Is it prohibited in the application, or did the protocol get fucked up when they moved to POS?
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Yes SEC made issuers remove staking from the filings. So it looks like the spot eth etf is a lock but it will not have staking rewards, which in my opinion really erodes its value proposition. I imagine that will come eventually but maybe SEC is keeping one toe in the water in case political winds shift again and they could argue that eth is a commodity but staked eth is a security (which is logical especially if you are staking with a custodian as most people do).
I think Larry Fink really wanted an eth etf. He wants to test tokenization of funds on eth (I don't think that's where they will eventually end up, my guess is it will be on a DTCC database) but if ethereum gets into the walled garden he can experiment with tokenized funds and sell them as being on an "approved" blockchain.
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Thanks for all of this great information.
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